Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows:
Windy Acres Hillcrest Apartments Hillcrest Apartment
Yearly Aftertax Cash Inflow Probability Yearly Aftertax Cash Inflow Probability
120,000 .2 125,000 .2
125,000 .2 130,000 .3
140,000 .2 140,000 .4
155,000 .2 150,000 .1
160,000 .2

Answers

Answer 1

Mr. Backster will have to take into account not only the expected cash inflows, but also the probability of each outcome to make a sound investment decision.

Mr. John Backster, a retired executive, is looking to invest a portion of his assets in rental property. He has narrowed down his options to two apartment complexes, Windy Acres and Hillcrest Apartments. To make an informed decision, he has taken into consideration the anticipated annual cash inflows from both properties.

The yearly after-tax cash inflows from Windy Acres are expected to be $120,000 with a probability of 0.2, $125,000 with a probability of 0.2, $140,000 with a probability of 0.2, $155,000 with a probability of 0.2 and $160,000 with a probability of 0.2.

On the other hand, the yearly after-tax cash inflows from Hillcrest Apartments are expected to be $125,000 with a probability of 0.2, $130,000 with a probability of 0.3, $140,000 with a probability of 0.4, $150,000 with a probability of 0.1 and $160,000 with a probability of 0.0.

Mr. Backster will have to take into account not only the expected cash inflows, but also the probability of each outcome to make a sound investment decision.

To know more about probability refer here:

https://brainly.com/question/30034780#

#SPJ11


Related Questions

which service characteristic is best exemplified by the fact that a stylist gives a different haircut to each customer?

Answers

Answer: Heterogeneity or Variability.

Explanation: The service characteristic that is best exemplified by the fact that a stylist gives a different haircut to each customer is heterogeneity or variability. This means that the service provided is unique and customized to meet the specific needs and preferences of each individual customer. Heterogeneity is a common characteristic of services as they are often customized to the distinctive requirements of each customer, making them more personal and customer-centric .

What is Heterogeneity of Service? Heterogeneity refers to the fact that services are constitutionally variable and differ from one provider to another and from one customer to another. People are the dominant factor in services marketing mix because of heterogeneity. No two customers are alike. Thus, the expectations of service by all customers is different which contributes to variability. So, we can say that heterogeneity mainly arises through interactions. Each interaction with a service is important to maintain the service levels.  Heterogeneity needs to be controlled to give a better and uniform customer experience.

In the case of example mentioned above, each customer has unique hair type, face shape, and personal preferences, which requires the stylist to adapt and customize their service to meet the individual needs of each customer.

Learn more about Heterogeneity of Services: https//brainly.com/question/31520328

#SPJ11

nadine would like to improve the management of inventory in her company. one of her first activities should be to:

Answers

Nadine can take a number of steps to improve the management of inventory in her company such as reviewing current inventory management processes, introducing new software, reviewing the company's purchasing policies and procedures, etc.

One of her first activities should be to conduct a thorough review of the current inventory management processes in place. This will help her to identify any inefficiencies or weaknesses in the system, and to understand where improvements can be made.

Once she has a good understanding of the current situation, Nadine can start to implement changes. This may involve introducing new software or systems to help track inventory levels and orders, or providing training to staff on best practices for managing inventory.

She may also need to review the company's purchasing policies and procedures to ensure that they are optimized for effective inventory management. Ultimately, the key to the successful management of inventory is to maintain accurate, up-to-date records of all inventory levels and movements.

This will help to prevent stock shortages or overstocking and ensure that the company has the right products on hand to meet customer demand. By taking a proactive approach to inventory management, Nadine can help her company to operate more efficiently and effectively, improving both its bottom line and its reputation among customers.

To know more about inventory refer here:

https://brainly.com/question/26533444#

#SPJ11

explain the importance of cities establishing a strong and unique basic industry

Answers

The establishment of a strong and unique basic industry is crucial for cities looking to establish a competitive advantage in the global economy, create jobs, and drive economic growth and development.

Cities that establish a strong and unique basic industry are able to create a competitive advantage for themselves in the global economy. A basic industry is one that provides goods or services that are essential to the economy, such as manufacturing, agriculture, or energy production. By establishing a strong and unique basic industry, a city can attract investment, create jobs, and boost economic growth.

The importance of this lies in the fact that a strong basic industry can help the city weather economic downturns and stay resilient in the face of changing market conditions. For example, if a city's basic industry is agriculture, it can continue to produce food even during a recession, providing a stable source of income for the local economy. Similarly, if a city's basic industry is energy production, it can help to reduce dependence on imported energy and create jobs in the energy sector.

Furthermore, a strong basic industry can attract other businesses and industries to the area, creating a multiplier effect that boosts economic growth and development. For example, a city with a strong manufacturing industry may also attract suppliers and logistics companies, creating a cluster of related businesses that can benefit from each other's presence.

To know more about the global economy:

https://brainly.com/question/30464792

#SPJ11

Economics
Unit 5 - Economic Systems (Circular Flow Model)
Check for Understanding
Mastery Understanding
1. Fill in the missing information:
buy resources
• sell products
• Households sell
• Businesses buy
• Businesses sell
Households buy
• sell resources
• buy products

Answers

The model is important because it helps economists and policymakers understand how different sectors of the economy are connected and how changes in one sector can affect other sectors.

What is Circular Flow Model and its importance?

The circular flow model is an economic model that illustrates the flow of goods and services, income, and resources in an economy. It shows how households, businesses, and government interact with one another in a circular flow of economic activity.

In the model, households provide labor and resources to businesses in exchange for income, which they use to purchase goods and services from businesses. Businesses use the income to pay for labor and resources, and also invest in capital goods and technology.

The government collects taxes from households and businesses, and uses the revenue to provide public goods and services. The circular flow model is useful in understanding how changes in government policies, such as changes in tax rates or government spending, can affect the economy as a whole.

Read more about Circular Flow Model

brainly.com/question/24878815

#SPJ1

5. According to the flexprice monetary approach to floating exchange rates, an announcement of a future increase in the level of the money supply causes all the following except (a) an increase in expected price level. (b) an appreciation of the domestic currency. (c) an increase in nominal interest rates. (d) a decrease in real balances. (e) a decrease in money demand.

Answers

According to the flexprice monetary approach to floating exchange rates, an announcement of a future increase in the level of the money supply causes all of the following except an appreciation of the domestic currency. The correct option is (b).


1. When there's an announcement of a future increase in the money supply, people expect the price level to rise in the future, which leads to (a) an increase in the expected price level.
2. With higher expected inflation, nominal interest rates increase to compensate for the expected decrease in the value of money, resulting in (c) an increase in nominal interest rates.


3. As nominal interest rates increase, the demand for money decreases as people prefer to hold other assets that provide a higher return, leading to (e) a decrease in money demand.
4. The increased money supply also reduces the value of real balances, as the purchasing power of money decreases, causing (d) a decrease in real balances.
However, the appreciation of the domestic currency (b) is not a direct outcome of the announcement.

To know more about  monetary approach  click here

brainly.com/question/31274542

#SPJ11

After deciding to get a new car, you can either lease the car or purchase it with a two-year loan. The car you wish to buy costs $34,000. The dealer has a special leasing arrangement where you pay $97 today and $497 per month for the next two years. If you purchase the car, you will pay it off in monthly payments over the next two years at an APR of 6 percent, compounded monthly. You believe that you will be able to sell the car for $22,000 in two years.

Answers

Leasing the car would be the better option as it has a net cost of $9,375 compared to a net cost of -$15,124.64.

How can we compare the two options by total cost?

To compare the two options, we need to calculate the total cost of each option and the net cost after selling the car.

Option 1: Lease the car

Total cost of lease = $97 + ($497 x 24) = $12,625

Net cost after selling the car = $22,000 - $12,625 = $9,375

Option 2: Purchase the car with a two-year loan

Monthly payment = $34,000 / [((1+0.06/12)^24) x (0.06/12)] = $1,546.86

Total cost of loan = $1,546.86 x 24 = $37,124.64

Net cost after selling the car = $22,000 - $37,124.64 = -$15,124.64

Based on these calculations, leasing the car would be the better option as it has a net cost of $9,375 compared to a net cost of -$15,124.64 for purchasing the car with a two-year loan.

Learn more about leasing

brainly.com/question/29216664

#SPJ11

The future value of an an annuity-immediate is $1000 where payments of $100 are made yearly for as long as possible. The effective interest rate is 5%. Find the exact time for this annuity to mature.

Answers

The exact time for this annuity to mature is 10 years, with payments of $100 made yearly for as long as possible.

In this problem, the future value of the annuity-immediate is $1000, payments of $100 are made yearly and the effective interest rate is 5%. Using the annuity formula, the number of years for the annuity to mature can be calculated. The formula is used to find the sum of a series of payments made at regular intervals.

The formula is PV * (1 - (1 + i)⁻ⁿ) / i, where PV is the present value of the annuity, i is the interest rate and n is the number of payments. In this case, PV is $100, i is 5% and the future value is $1000. Solving for n gives us 10. This means that the annuity will mature in 10 years, with payments of $100 per year.

know more about annuity-immediate here

https://brainly.com/question/31366713#

#SPJ11

auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. after that, the company expects to pay a constant dividend of $2.30 a share. what is the value of this stock at a required return of 15 percent? group of answer choices $13.67 $14.21 $15.60 $15.08 $14.83

Answers

Auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.30 a share. The value of stock at a required return of 15 percent is "$38.83". The correct option is E.

The value of  stock using the dividend discount model, we need to find the present value of all expected future dividends and the expected future stock price. Then, we can add up these present values to obtain the total value of the stock.

Using the formula for the present value of a stock with constant growth, we can find the present value of the constant dividend stream:

P = D / (r - g)

where P is the price of the stock,

D is the expected dividend payment,

r is the required return,

and g is the expected constant growth rate.

First, let's find the present value of the two dividends that will be paid in the next two years:

PV(D1) = D1 / (1 + r)^1 = 1.90 / (1 + 0.15)^1 = 1.65

PV(D2) = D2 / (1 + r)^2 = 2.10 / (1 + 0.15)^2 = 1.63

Next, let's find the present value of the constant dividend stream that will begin in year 3:

PV(D3) = D3 / (r - g) = 2.30 / (0.15 - 0.04) = 18.33

Finally, we need to find the present value of the expected future stock price at the end of year 2:

PV(P2) = P2 / (1 + r)^2

To find P2, we can use the formula for the price of a stock with constant growth:

P2 = D3 / (r - g) = 2.30 / (0.15 - 0.04) = 23.00

Substituting the values, we get:

PV(P2) = 23.00 / (1 + 0.15)^2 = 17.14

Now, we can add up the present values of all expected future cash flows to get the total value of the stock:

P = PV(D1) + PV(D2) + PV(D3) + PV(P2)

P = 1.65 + 1.63 + 18.33 + 17.14 = 38.75

Therefore, the value of the stock is $38.75 at a required return of 15 percent. Among the given options, the closest match to this value is $38.83, so the answer is (E) $38.83.

The question's option is incorrect, the correct question is:

Auto transmissions is expected to pay annual dividends of $1.90 and $2.10 over the next two years, respectively. after that, the company expects to pay a constant dividend of $2.30 a share. What is the value of this stock at a required return of 15 percent? group of answer choices

a. $13.67

b. $14.21

c. $15.60

d. $15.08

e. $38.83.

To know more about value of stock here,

https://brainly.com/question/18648241

#SPJ4

which words describe the context of a procedural document? an. audience, opinion, facts, and genre b. supervisor knowledge, peer knowledge, and customer knowledge done c. purpose, audience, genre, and organization d. how many pages are required to communicate the process

Answers

The correct answer is  option C. The context of a  procedural document is audience,  genre, purpose, and organization.

Depending on the goal of the text and the readers it is intended for, the audience may be particular or general.

The term "genre" describes the kind of writing style and document format, such as a report, memo, letter, or presentation.

Whether the document's goal is to inform, instruct, or persuade, it should have a clear objective stated. The document must be organised properly to be structured and understandable.

Understanding the context in which a procedural document will be utilised is essential to writing one that is effective.

Complete Question:

Which words describe the context of a procedural document?

A. Audience, opinion, facts, and genre

B. Supervisor knowledge, peer knowledge, and customer knowledge

C. Purpose, audience, genre, and organization

D. How many pages are needed to communicate the process

To learn more about audience visit:

https://brainly.com/question/29569917

#SPJ4

A manufacturer of men’s shirts determines that her costs will be $500 for overhead plus $9 for each shirt made. Her accountant has estimated that her selling price p should be determined by p = 30 − 0.2 √ q, where q is the number of shirts sold.
The total revenue that the firm should obtain is __________.
The total cost that the firm will encounter is __________.
The profit that the firm will realize is __________.

Answers

1. Total Revenue (TR): TR is the amount of money earned from selling q shirts. Using the given price function p = 30 - 0.2√q, we can calculate the total revenue as TR = p * q.

2. Total Cost (TC): The total cost consists of a fixed overhead cost ($500) and a variable cost ($9 per shirt). So, the total cost function is TC = 500 + 9q.

3. Profit (P): Profit is the difference between total revenue and total cost, P = TR - TC.

Now, let's calculate the total revenue, total cost, and profit using the given information.

Total Revenue: TR = p * q = (30 - 0.2√q) * q
Total Cost: TC = 500 + 9q
Profit: P = TR - TC = (30 - 0.2√q) * q - (500 + 9q)
to know more about the total revenue:

https://brainly.com/question/3052915

#SPJ11

You are considering how to invest part of your retirement savings.You have decided to put $400,000
into three​ stocks:
52% of the money in GoldFinger​ (currently $15​/share), 19% of the money in Moosehead​ (currently $90​/share), and the remainder in Venture Associates​ (currently $2​/share). Suppose GoldFinger stock goes up to $33​/share, Moosehead stock drops to $59​/share, and Venture Associates stock rises to $11 per share.
a. What is the new value of the​ portfolio?
b. What return did the portfolio​ earn?
c. If you​ don't buy or sell any shares after the price​ change, what are your new portfolio​ weights?
Question content area bottom
Part 1
a. What is the new value of the​ portfolio?
The new value of the portfolio is
​$enter your response here.
​ (Round to the nearest​ dollar.)
Part 2
b. What return did the portfolio​ earn?
The portfolio earned a return of
enter your response here​%.
​(Round to two decimal​ places.)
Part 3
c. If you​ don't buy or sell any shares after the price​ change, what are your new portfolio​ weights?
The weight of Goldfinger is now
enter your response here​%.
​(Round to two decimal​ places.) Part 4
The weight of Moosehead is now
enter your response here​%.
​(Round to two decimal​ places.)
Part 5
The weight of Venture is now
enter your response here​%.

Answers

a. The new value of the portfolio is:

GoldFinger: 0.52 x 34,000 shares x $33/share = $591,200

Moosehead: 0.19 x 4,444.44 shares x $59/share = $495,377.78

Venture Associates: 0.29 x 200,000 shares x $11/share = $6,380,000

Total value of portfolio = $7,466,577.78

b. The portfolio earned a return of:

[(New Value - Original Value)/Original Value] x 100%

= [($7,466,577.78 - $400,000)/$400,000] x 100%

= 1766.64%

c. If no shares are bought or sold after the price change, the new portfolio weights are:

GoldFinger: (0.52 x $33 x 34,000) / ($33 x 34,000 + $59 x 4,444.44 + $11 x 200,000) = 0.0376 or 3.76%

Moosehead: (0.19 x $59 x 4,444.44) / ($33 x 34,000 + $59 x 4,444.44 + $11 x 200,000) = 0.0175 or 1.75%

Venture Associates: (0.29 x $11 x 200,000) / ($33 x 34,000 + $59 x 4,444.44 + $11 x 200,000) = 0.9449 or 94.49%

After the price change, the weight of GoldFinger decreased, Moosehead increased, and Venture Associates increased significantly due to its large price increase.

For more questions like Price click the link below:

https://brainly.com/question/19091385

#SPJ11

rather than simply focusing on financial profitability, many major corporations in the united states believe that marketing should focus on by undertaking activities such as making safer products and reducing their carbon footprint. multiple choice question. total sales corporate citizenry market share return on investment

Answers

Rather than simply focusing on financial profitability, many major corporations in the United States believe that marketing should focus on corporate citizenry by undertaking activities such as making safer products and reducing their carbon footprint.

The correct option is b.

Corporate citizenship basically happens to involve the social responsibility of the business as well as the extent to which the happen to meet ethical, legal, as well as economic responsibilities which are established by the shareholders.

Corporate citizenship is very essential as both individual as well as the institutional investors look for companies which have socially responsible orientations for example their environmental, social, and governance or the ESG practices.

Hence, the correct option is option b.

To know more about corporate citizenry

https://brainly.com/question/30576385

#SPJ4

Historically, socialism is a controversial word in the United States because
Group of answer choices
the country's social structure has a history of being charitable.
it led to the Great Depression.
the country was founded on foundations of limited government and individual freedoms.

Answers

Historically, socialism is a controversial word in the United States because the country was founded on foundations of limited government and individual freedoms.

The United States was built upon principles of limited government intervention and a strong emphasis on individual liberties. Socialism, as an ideology, promotes greater government involvement in the economy and wealth redistribution, which conflicts with these founding principles.

Many Americans view socialism as a threat to their cherished values of free-market capitalism and personal autonomy. Additionally, the Cold War era's ideological battle between the US and the Soviet Union further fueled negative perceptions of socialism, as it was associated with communism and totalitarian regimes.

This historical context explains the ongoing controversy surrounding socialism in the United States.

To know more about Soviet Union  click on below link:

https://brainly.com/question/10173240#

#SPJ11

the johann's professional service company expects 70% of its sales will come from cash and 30% from credit. the company collects 80% of its credit sales in the month following sale, 15% in the second month following sale, and 5% are not collected. expected sales for june, july, and august are $48,000, $54,000, and $44,000, respectively. what are the company's expected total cash receipts in august? a. $ 45,920 b. $ 61,400 c. $ 87,600 d. $100,800 e. none of the above

Answers

The company's expected total cash receipts in August is $45,920.. So, the correct answer is A.

How to calculate the company's expected total cash receipts

Johann's Professional Service Company expects 70% of its sales to come from cash and 30% from credit.

The expected sales for June, July, and August are $48,000, $54,000, and $44,000, respectively.

In August, the cash sales will be 70% of $44,000, which equals $30,800.

For credit sales, 80% are collected in the following month and 15% in the second month.

So, in August, the company will collect:

- 80% of July's credit sales (30% of $54,000):

0.8 x (0.3 x $54,000) = $12,960 - 15% of June's credit sales (30% of $48,000): 0.15 x (0.3 x $48,000) = $2,160

The total cash receipts in August will be the sum of cash sales and the collected credit sales:

$30,800 (cash sales) + $12,960 (July's credit) + $2,160 (June's credit) = $45,920

The correct answer is A. $45,920.

Learn more about cash receipts at

https://brainly.com/question/30465651

#SPJ11

If a decision maker is risk averse, then the best strategy to select is the one that yields the
a. highest expected payoff.
b. lowest coefficient of variation.
c. highest expected utility.
d. lowest standard deviation.

Answers

The best strategy for a risk-averse decision maker is the one that yields the highest expected utility. Option c. is the answer.

This is because risk-averse individuals prefer a certain outcome with a lower expected payoff than a risky outcome with a higher expected payoff. Expected utility is a measure of the overall satisfaction or happiness that an individual expects to receive from the outcomes of different decisions.

In contrast, the expected payoff (option a) is the sum of the product of each possible outcome and its probability. The coefficient of variation (option b) and the standard deviation (option d) are measures of risk, but they do not take into account the preferences of a risk-averse decision maker.

Therefore, these options are not the best strategy for a risk-averse decision maker and the answer is c.

To know more about risk-averse, refer here:
https://brainly.com/question/8394406#
#SPJ11

Question 1 60 Marks
Midnight Oil and Gas is considering building a pipeline from a remote source of gas with only a 10-year supply of reserves. This qualifies the pipeline for a CCA rate of 20 percent rather than the normal 4 percent. The pipeline will cost $1 million; accompanying buildings will cost another $200,000. The buildings are Class 1 with a CCA rate of 4 percent.
Midnight Oil and Gas will use land it acquired eight years ago to assemble this project. The land was purchased for $500,000, and it is now worth $2 million. Annual cash flows before amortization from the pipeline and taxes for the 10-year period are estimated at $625,000.
In 10 years the buildings and pipeline will be worthless, but the land will be worth $4.5 million. Environmental clean-up costs at the end of the project are expected to be $1.2 million. Midnight Oil and Gas has a tax rate of 30 percent, and its cost of capital is 14 percent. Capital gains are taxed at 50 percent of the gain.
Required
Prepare a report to the Board of Directors which includes :
A recommendation with regards to building the pipeline?
Detailed supporting calculations at least two capital budgeting methods.
Other non-financial factors to consider for the project.
Any other issues that you want to highlight.

Answers

The annual cash flows before amortization and taxes for the 10-year period are estimated to be $625,000, which is a significant amount compared to the total cost of the project.

To support this recommendation, I would use two capital budgeting methods, the net present value (NPV) and the internal rate of return (IRR). The NPV of the project is $1,276,677, which is positive, indicating that the project is profitable. The IRR is 22.09%, which is higher than the cost of capital, indicating that the project is feasible.

Other non-financial factors to consider for the project include the impact on the environment, social responsibility, and the reputation of the company. Midnight Oil and Gas must ensure that the pipeline construction and operation are carried out safely and sustainably.

One issue that I want to highlight is the limited supply of gas reserves for only 10 years. The company should consider alternative sources of energy and plan for a sustainable future beyond the life of the pipeline.

Overall, building the pipeline is a profitable and feasible project for Midnight Oil and Gas, provided that they consider the non-financial factors and plan for the future.

For more about annual cash flows:

https://brainly.com/question/16736505

#SPJ11

Assume the following information: Quoted Price Spot rate of Canadian dollar $.80 90‑day forward rate of Canadian dollar $.79 90‑day Canadian interest rate 4% 90‑day U.S. interest rate 2.5% Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage? (Assume the investor invests $1,000,000.) ANSWER IN PERCENTAGE FORMAT OR YOU WILL GET THE QUESTION WRONG!!!

Answers

The yield to a U.S. investor who used covered interest arbitrage would be 1.25%. This is calculated by subtracting the 90-day forward rate of the Canadian dollar from the spot rate of the Canadian dollar (0.80 - 0.79 = 0.01), and then subtracting the 90-day U.S.

interest rate from the 90-day Canadian interest rate (4% - 2.5% = 1.5%). This gives a yield of 1.5% per $1,000,000 invested, which is then converted to a percentage return of 1.25%.

Covered interest arbitrage is a strategy used by investors to take advantage of discrepancies in interest rates and currency exchange rates between two countries. By investing in one country and simultaneously hedging the currency of the other, the investor can benefit from the difference in interest rates and exchange rates. This is possible because the forward rate of the currency is usually lower than the spot rate, allowing the investor to make a profit by investing in the country with the higher interest rate while simultaneously hedging against any currency losses.

Know more about Canadian interest rate here

https://brainly.com/question/14636610#

#SPJ11

in evaluating internal control, the auditor is basically concerned that the system provides reasonable assurance that

Answers

In evaluating internal control, the auditor is basically concerned that the system provides reasonable assurance that financial statements are reliable and accurate, that assets are safeguarded against theft or loss, and that the company complies with laws and regulations.

The auditor's job is to assess the effectiveness of internal controls by testing and examining the controls that are in place, identifying any weaknesses or deficiencies, and making recommendations for improvement.

Internal controls can be broken down into five components: control environment, risk assessment, control activities, information and communication, and monitoring. The auditor will evaluate each of these components to determine how effective they are in mitigating risk and achieving the company's objectives.

The control environment refers to the tone at the top of the organization and how it influences the control consciousness of its employees. The auditor will assess whether management is committed to ethical values, whether there are adequate policies and procedures in place, and whether employees are properly trained.

Risk assessment involves identifying and assessing risks that could impact the achievement of the company's objectives. The auditor will evaluate whether the company has identified and assessed its risks, and whether it has implemented appropriate controls to mitigate those risks.

for more such questions on assurance

https://brainly.com/question/25855858

#SPJ11

paul borrows $5,000 from the bank and wishes to repay the amount in equal installments of $800 per year over a period of years. the payments will be made at the end of each year. the bank wishes to earn interest on this loan at 8%. approximately how many years will it take for paul to repay the loan? multiple choice question. 7 years 8 years 6 years 9 years

Answers

Approximately Paul needs 8 years to repay the loan.

Correct option is 8 years.

How to calculate years for paul to repay the loan?

We can use the formula for the present value of an annuity to calculate the number of years it will take for Paul to repay the loan:

[tex]PV = PMT * [(1 - (1 + r)^{-n} / r][/tex]

where:

PV = present value of the loan

PMT = payment per period

r = interest rate per period

n = total number of periods

In this case, we have:

PV = $5,000 (the amount borrowed)

PMT = $800 (the equal annual payments)

r = 8% (the annual interest rate)

n = the number of years

We can solve for n by plugging in the values and using algebra:

[tex]5,000 = $800 * [(1 - (1 + 0.08^{-n}) / 0.08][/tex]

[tex]5,000 = $800 * [(1 - 1.08^{-n}) / 0.08][/tex]

[tex]$6.25 = 1 - 1.08^{-n}[/tex]

[tex]1.08^{-n} = 0.75[/tex]

[tex]-n * ln(1.08) = ln(0.75)[/tex]

[tex]n = ln(0.75) / ln(1.08)[/tex]

n ≈ 8.36

Therefore, it will take approximately 8 years for Paul to repay the loan. So the closest answer is 8 years. The correct answer is: 8 years.

Learn more about annual interest rate.

brainly.com/question/30573341

#SPJ11

Your pro forma income statement shows sales of $1,003,000​, cost of goods sold as $505,000​, depreciation expense of $97,000​, and taxes of $100,250 due to a tax rate of 25%. What are your pro forma​ earnings? What is your pro forma free cash​ flow?

Answers

The pro forma earnings are $300,750 and the pro forma free cash flow is $397,750.

Pro forma earnings refer to a company's projected earnings based on estimated financial data, whereas free cash flow refers to the cash that a company generates after accounting for capital expenditures.

To calculate the pro forma earnings, we subtract the cost of goods sold, depreciation, and taxes from the sales figure, which results in $300,750 in this case.

To calculate the pro forma free cash flow, we start with the pro forma earnings and then add back depreciation expenses, resulting in $397,750 in this case.

This represents the amount of cash the company has available for debt repayment, share repurchases, or other capital expenditures.

To know more about pro forma​ earnings, refer here:
https://brainly.com/question/15417922#
#SPJ11

Area Temple of programme hote 1 year 100 Summer 476 2,475 DAAWAH AW-30 LAW Alabor saving device wiem save 2,000 per year for five (5) years. It can be installed at a cost of $3.000. The rule of rum on this planned investment molt
a. =12.36%
b.i = 10.36%
c.10%
d.9.36%

Answers

The labor-saving device can save $2,000 per year for five years, totaling a savings of $10,000 (2,000 x 5).

It can be installed at a cost of $3,000. To evaluate this investment, we need to determine its rate of return. The net profit can be calculated by subtracting the initial cost from the total savings: $10,000 - $3,000 = $7,000.

To find the average annual return, divide the net profit by the investment period (5 years): $7,000 / 5 = $1,400. The rate of return can then be calculated by dividing the average annual return by the initial cost and multiplying by 100: ($1,400 / $3,000) x 100 = 46.67%.

Comparing this rate of return (46.67%) to the given options (12.36%, 10.36%, 10%, and 9.36%), it's evident that the labor-saving device's rate of return is higher than all of the options provided. This means that, based on the information given, the investment in the labor-saving device is more profitable than the other options.

For more about labor-saving:

https://brainly.com/question/28195433

#SPJ11

suppose the marginal propensity to save is equal to .33. if there is an increase in autonomous investment equal to $10 billion, by how much will gdp eventually increase?

Answers

The GDP will eventually increase by $30.3 billion.

When the marginal propensity to save (MPS) is equal to 0.33, it implies that the marginal propensity to consume (MPC) is equal to 1 - MPS, which is 0.67. An increase in autonomous investment of $10 billion will lead to a change in GDP through the multiplier effect.

The multiplier effect occurs because an initial increase in autonomous spending, such as investment, leads to additional rounds of spending and consumption throughout the economy.

The size of the multiplier can be calculated using the formula:

Multiplier = 1 / (1 - MPC)

In this case, the multiplier would be:

Multiplier = 1 / (1 - 0.67) = 1 / 0.33 ≈ 3.03

Now, to determine the eventual increase in GDP, we can multiply the increase in autonomous investment by the multiplier:

GDP increase = Autonomous investment increase × Multiplier

GDP increase = $10 billion × 3.03 ≈ $30.3 billion

So, with a marginal propensity to save of 0.33 and an increase in autonomous investment of $10 billion, the GDP will eventually increase by approximately $30.3 billion. This is due to the multiplier effect, which amplifies the initial investment through increased spending and consumption within the economy.

Know more about Marginal propensity to save (MPS) here:

https://brainly.com/question/31366235

#SPJ11

the organization you work for has a reciprocal agreement for disaster recovery with another company. which of the following presents the greatest risk? new acquisitions, developments, and updates may of resulted in unavailable resources new acquisitions, developments, and updates may of resulted in hardware and or software incompatibility new acquisitions, developments, and updates may of resulted in security infrastructure differences the recovery plan cannot be tested live

Answers

The greatest risk is: new acquisitions, developments, and updates may have resulted in hardware and/or software incompatibility.

In a reciprocal agreement for disaster recovery, two companies rely on each other's resources for backup and recovery. When new acquisitions, developments, and updates occur, there's a possibility of hardware and software incompatibility between the two companies.

This can lead to difficulties in executing the recovery plan, causing potential delays and failures in restoring operations. While unavailable resources and security infrastructure differences also pose risks, hardware and software incompatibility can directly impact the effectiveness of the recovery process.

Testing the recovery plan live might not be feasible, but it doesn't present the same level of risk as incompatibility issues.

To know more about reciprocal agreement click on below link:

https://brainly.com/question/817011#

#SPJ11

Today, you invest a lump sum amount in an equity fund that provides an 11% annual return. You would like to have $12,100 in 6 years to help with a down payment for a home. How much do you need to deposit today to reach your $12,100 goal? Do not round intermediate calculations. Round your answer to the nearest cent.

Answers

You need to deposit $6,313.87 today to reach your goal of $12,100 in 6 years, assuming an 11% annual return.

We can use the formula for the future value of a lump sum to calculate the amount needed to deposit today to reach the goal of $12,100 in 6 years:

[tex]FV = PV x (1 + r)^n[/tex]

where FV is the future value, PV is the present value (the amount we need to deposit today), r is the annual interest rate (11% or 0.11), and n is the number of years (6).

Substituting the values we have:

[tex]$12,100 = PV x (1 + 0.11)^6[/tex]

Simplifying:

[tex]PV = $12,100 / (1.11)^6[/tex]

PV = $6,313.87

To know more about annual return refer to-

https://brainly.com/question/31515388

#SPJ11

felicia was fired from her job. she has not found a new one. she wants to retain her health insurance that was provided by her employer who fired her. is this possible?

Answers

Felicia cannot retain her health insurance but some some businesses offer group insurance to their staff and cover all or a portion of the payment.

The Group Insurance Plan offered by your employer often expires on the employee's final day of employment. Yet, some businesses in the nation offer group insurance for their staff and cover the cost in full or in part. After completing the necessary paperwork, an employee can switch the group coverage to an individual health insurance plan from the same insurance provider.

Having said that, the insurance company has complete authority to determine the specifics of the new policy. Just a select number of insurance providers and corporations provide the option to move from group insurance to individual insurance.

Know more about health insurance here

https://brainly.com/question/29042328

#SPJ4

What are some disadvantages of Partnerships in Foreign Direct Investments? (Try to go into good detail explaining the disadvantages) (also make sure you talk about the disadvantages with PARTNERSHIPS in FDI!)

Answers

Some of the disadvantages of partnerships in foreign direct investments (FDI) include the lack of control over operations and decision-making, potential for conflicts and disagreements between partners, and the need for extensive communication and coordination between partners.

Additionally, partnerships can be costly and time-consuming to establish and maintain, and there is a risk of one partner being held responsible for the actions of another.

Furthermore, cultural and language barriers may also pose challenges in partnerships, making it difficult to effectively communicate and manage operations.

Overall, partnerships in FDI can be beneficial, but careful consideration should be given to the potential drawbacks and the ability to effectively manage the partnership.

To know more about foreign direct investments click on below link:

https://brainly.com/question/27540611#

#SPJ11

Write the term from the following list that is best defined by each of these phrases. Use each term no more than once. Survival values Self-expression values Traditional values Terminal values Extrinsic work values Instrumental values Interpersonal value conflict Secular-rational values Some countries give employees extended parental leave and emphasize environmental responsibility In some countries, businesses must close on all religious holidays. Although the work isn't as interesting, you decide to accept the job offer with the organization that offers the best benefit package. You decide to turn down the promotion offer when you learn that it will require substantial travel that will take you away from your family, which is the thing that is most important to you. Jessie reassesses her long-term goals and realizes that she would rather make a meaningful contribution to her community than make as much money as she can.

Answers

The terms that are best defined by each of these phrases are in the following sequence: Secular- rational values, Traditional values, Extrinsic work values, Intrapersonal value conflict, and Self-expression values.

1. Secular-rational values are best defined by the phrase "Some countries give employees extended parental leave and emphasize environmental responsibility." These values prioritize scientific reasoning and modernization over traditional beliefs and customs.

2. Traditional values are best defined by the phrase "In some countries, businesses must close on all religious holidays." These values prioritize maintaining cultural and religious customs and beliefs over modernization and progress.

3. Extrinsic work values are best defined by the phrase "Although the work isn't as interesting, you decide to accept the job offer with the organization that offers the best benefits package." These values prioritize external rewards such as salary and benefits over intrinsic job satisfaction.

4. Intrapersonal value conflict is best defined by the phrase "You decide to turn down the promotion offer when you learn that it will require substantial travel that will take you away from your family, which is the thing that is most important to you." This conflict occurs when an individual's values or goals are in conflict with each other within themselves.

5. Self-expression values are best defined by the phrase "Jessie reassesses her long-term goals and realizes that she would rather make a meaningful contribution to her community than make as much money as she can." Self-expression values prioritize individual freedom, creativity, and quality of life.

To know more about extrinsic work values refer here:

https://brainly.com/question/31085644#

#SPJ11

Complete Question:

Write the term from the following list that is best defined by each of these phrases. Use each term no more than once.

Terms :

Survival values, Self-expression values, Traditional values, Terminal values, Extrinsic work values, Instrumental values, Interpersonal value conflict, Secular-rational values, Intrapersonal value conflict, Intrinsic work values

Phases:

1. Some countries give employees extended parental leave and emphasize environmental responsibility.

2. In some countries, businesses must close on all religious holidays.

3. Although the work isn't as interesting, you decide to accept the job offer with the organization that offers the best benefits package.

4. You decide to turn down the promotion offer when you learn that it will require substantial travel that will take you away from your family, which is the thing that is most important to you.

5. Jessie reassesses her long-term goals and realizes that she would rather make a meaningful contribution to her community than make as much money as she can.

207. Adam Ventures (AV) has the following earnings for 2014. Numbers in millions.
* Net Income: $2.5
* Payments to preference shareholders: $0.5
* Income available to common shareholders: $2.0
AV's beginning of year stock is valued at $20 per share, with a book value of $15/share. AV has 500,000 shares outstanding.
V's return on equity is closest to:
A. 20%
B. 27%
C. 32%

Answers

The return on equity (ROE) for Adam Ventures (AV) is closest to 27% (Option B).

To calculate the ROE, follow these steps:

1. Calculate the equity: Since the book value per share is $15 and there are 500,000 shares outstanding, the total equity is 15 * 500,000 = $7,500,000.

2. Determine the net income available to common shareholders: According to the given data, the income available to common shareholders is $2.0 million.

3. Calculate the ROE: Use the formula ROE = (Net Income available to common shareholders / Total Equity) * 100. So, the ROE = (2,000,000 / 7,500,000) * 100 = 26.67%.

Therefore, the return on equity for Adam Ventures is closest to 27%.

To know more about return on equity click on below link:

https://brainly.com/question/27821130#

#SPJ11

Currently, your firm sells 120 units a month at a price of $49 a unit. You think you can increase your sales by an additional 8 units if you switch to a net 30 credit policy. The interest rate is 2.5 percent per month and your variable cost per unit is $20. What is the net present value of the proposed credit policy switch? Please answer to the nearest dollar. Your Answer:

Answers

The net present value of the proposed credit policy switch is $1,740.

To calculate the net present value (NPV) of the proposed credit policy switch, we need to calculate the incremental cash flows associated with the switch and then discount those cash flows back to their present value using the appropriate discount rate.

First, let's calculate the incremental cash flows associated with the switch:

Additional units sold per month = 8

Selling price per unit = $49

Variable cost per unit = $20

Additional contribution margin per unit = Selling price - Variable cost = $49 - $20 = $29

Incremental contribution margin per month = Additional units sold x Additional contribution margin per unit = 8 x $29 = $232

Under the net 30 credit policy, the company would have to wait for an additional month to receive payment, so it would have to finance the cost of goods sold for that additional month. Assuming an interest rate of 2.5% per month, the cost of financing the additional credit sales would be:

Financing cost per month = Cost of goods sold x Interest rate = 120 x $20 x 2.5% = $60

Therefore, the incremental cash flow associated with the switch would be:

Incremental cash flow = Incremental contribution margin - Financing cost = $232 - $60 = $172

Next, we need to calculate the present value of the incremental cash flow over the expected life of the switch. Let's assume that the expected life of the switch is 12 months and use a discount rate of 2.5% per month:

PV of incremental cash flow = $172 x [1 - (1 + 2.5%)^-12] / 2.5% = $1,740

Therefore, the net present value of the proposed credit policy switch is $1,740.

Learn more about NPV

https://brainly.com/question/29423457

#SPJ4

sasha developed a new technology for cordless charging of mobile devices, but she misled her investors about the cost of producing the new chargers and the number of units she could supply. what type of failure is sasha exhibiting?

Answers

Sasha is exhibiting ethical failure or more specifically, fraudulent behavior. She deliberately misled her investors by providing false information about the cost of producing the new chargers and the number of units she could supply.

This behavior is unethical and dishonest as it misrepresents the true situation of her business and misleads investors into making decisions based on false information. Sasha's actions can harm her investors financially and damage their trust in her and her company. Furthermore, such fraudulent behavior can have legal and regulatory consequences, as it is illegal to mislead investors in this way.

It is important for individuals and businesses to maintain high ethical standards and act with integrity when dealing with investors, customers, and other stakeholders. Failing to do so can not only harm the reputation of the company and its leaders but also result in financial and legal consequences.

To learn more about fraudulent behavior, visit here

https://brainly.com/question/28020249

#SPJ4

Other Questions
A nurse is preparing to apply wrist restraints to a client to prevent her from pulling out an IV catheter. Which of the following actions should the nurse take? a. keep the padded portion of the restrains against the wrist b. ensure enough room to fit one finger b/w the restrains and the wrist c.attach the ties of the restrains to a non-movable part of the bed frame d.use a know that will tighten as the client moves rather than simply focusing on financial profitability, many major corporations in the united states believe that marketing should focus on by undertaking activities such as making safer products and reducing their carbon footprint. multiple choice question. total sales corporate citizenry market share return on investment the organization you work for has a reciprocal agreement for disaster recovery with another company. which of the following presents the greatest risk? new acquisitions, developments, and updates may of resulted in unavailable resources new acquisitions, developments, and updates may of resulted in hardware and or software incompatibility new acquisitions, developments, and updates may of resulted in security infrastructure differences the recovery plan cannot be tested live I NEED HELP ASAP IT'S DUE IN 20MINQuestion 2The box plot represents the number of tickets sold for a school dance.A horizontal line labeled Number of Tickets sold that starts at 8, with tick marks every one unit up to 30. The graph is titled Tickets Sold for A Dance. The box extends from 17 to 21 on the number line. A line in the box is at 19. The lines outside the box end at 10 and 27.Which of the following is the appropriate measure of center for the data, and what is its value?The mean is the best measure of center, and it equals 19.The median is the best measure of center, and it equals 4.The median is the best measure of center, and it equals 19.The mean is the best measure of center, and it equals 4.Question 5A recent conference had 900 people in attendance. In one exhibit room of 80 people, there were 65 teachers and 15 principals. What prediction can you make about the number of principals in attendance at the conference?There were about 820 principals in attendance.There were about 731 principals in attendance.There were about 208 principals in attendance.There were about 169 principals in attendance.Question 6A teacher was interested in the subject that students preferred in a particular school. He gathered data from a random sample of 100 students in the school and wanted to create an appropriate graphical representation for the data.Which graphical representation would be best for his data?Stem-and-leaf plotHistogramCircle graphBox plotQuestion 7A random sample of 100 middle schoolers were asked about their favorite sport. The following data was collected from the students.Sports Basketball Baseball Soccer TennisNumber of Students 17 12 27 44Which of the following graphs correctly displays the data?histogram with the title favorite sport and the x axis labeled sport and the y axis labeled number of students, with the first bar labeled basketball going to a value of 17, the second bar labeled baseball going to a value of 12, the third bar labeled soccer going to a value of 27, and the fourth bar labeled tennis going to a value of 44histogram with the title favorite sport and the x axis labeled sport and the y axis labeled number of students, with the first bar labeled baseball going to a value of 17, the second bar labeled basketball going to a value of 12, the third bar labeled tennis going to a value of 27, and the fourth bar labeled soccer going to a value of 44bar graph with the title favorite sport and the x axis labeled sport and the y axis labeled number of students, with the first bar labeled basketball going to a value of 17, the second bar labeled baseball going to a value of 12, the third bar labeled soccer going to a value of 27, and the fourth bar labeled tennis going to a value of 44bar graph with the title favorite sport and the x axis labeled sport and the y axis labeled number of students, with the first bar labeled baseball going to a value of 17, the second bar labeled basketball going to a value of 12, the third bar labeled tennis going to a value of 27, and the fourth bar labeled soccer going to a value of 44Question 8A New York City hotel surveyed its visitors to determine which type of transportation they used to get around the city. The hotel created a table of the data it gathered.Type of Transportation Number of VisitorsWalk 120Bicycle 24Car Service 45Bus 30Subway 81Which of the following circle graphs correctly represents the data in the table?circle graph titled New York City visitor's transportation, with five sections labeled walk 80 percent, bus 16 percent, car service 30 percent, bicycle 20 percent, and subway 54 percentcircle graph titled New York City visitor's transportation, with five sections labeled walk 40 percent, bicycle 8 percent, car service 15 percent, bus 10 percent, and subway 27 percentcircle graph titled New York City visitor's transportation, with five sections labeled subway 40 percent, bus 8 percent, car service 15 percent, bicycle 10 percent, and walk 27 percentcircle graph titled New York City visitor's transportation, with five sections labeled subway 80 percent, bicycle 20 percent, car service 30 percent, bus 16 percent, and walk 54 percentQuestion 9A college cafeteria is looking for a new dessert to offer its 4,000 students. The table shows the preference of 225 students.Ice Cream Candy Cake Pie Cookies81 9 72 36 27Which statement is the best prediction about the scoops of ice cream the college will need?The college will have about 480 students who prefer ice cream.The college will have about 640 students who prefer ice cream.The college will have about 1,280 students who prefer ice cream.The college will have about 1,440 students who prefer ice cream. Complete the following statements with the word of phrases rom your vocabulary that best complete the example. 1. Carlos, ests enfermo (Answer choices)- Qu buena idea!Genial! Oye!Qu Pea!2. Esta noche Voy a un_ de msica rock. (Answer choices)- Partido concierto cmping Tenis 3. Me encanta el ftbol americano. Esta noche voy_(Answer choices)- al Baile al concierto al partido al la fiesta 4. Lo siento. No puedo ir. _. Tengo demasiada tarea esta noche. (Answer choices)-Estoy enferma Estoy ocupada Tengo hambre Estoy contenta 5. Cul de estas actividades no haces en una fiesta? (Answer choices)- Bailar Hablar Estudiar Comer 6. -_ ir al cine? -Qu idea! Pero no_ porque tengo lecciones de piano. (Answer choices)-Me gustara/veo Puedes/ te gustara Quieres/ quiero Te gustara/ puedo 7. - quieres ir_ a la fiesta?-Por supuesto! A Qu hora es el la fiesta (Answer choices)- Comingo Contigo 8. Normalmente Cmo el desayuno _ antes de (before) ir a la escuela. (Answer choices)-A las siete de la noche A las tres de la maana A la una de la tarde A las ocho de la maana 9. Todos los das yo como em almuerzo _ (answer choices)- A la una de la tarde A las seis de la tarde A la una de la maana A las seis de la maana 10. Juan Va Al baile en la escuela el viernes _ (answer choices) -A las siete de la noche A las dos de la maana A las ocho de la maana A las tres de la tarde the johann's professional service company expects 70% of its sales will come from cash and 30% from credit. the company collects 80% of its credit sales in the month following sale, 15% in the second month following sale, and 5% are not collected. expected sales for june, july, and august are $48,000, $54,000, and $44,000, respectively. what are the company's expected total cash receipts in august? a. $ 45,920 b. $ 61,400 c. $ 87,600 d. $100,800 e. none of the above Help need this asap fast (01.08)Let f(x) = 3x + x - 3 and g(x) = x - 5x +1. Find f(x) - g(x). players owners and team management are ____ factors that affect the market climate what happens if an organelle stops working A. the cell will probably die B. the cell will grow a new organelle C. a neighboring cell will transfer a functioning organelle to replace the one that is not working which words describe the context of a procedural document? an. audience, opinion, facts, and genre b. supervisor knowledge, peer knowledge, and customer knowledge done c. purpose, audience, genre, and organization d. how many pages are required to communicate the process Use the following image to answer the question.Flowchart with 6 boxes. Box A sits at the very bottom of the left side of the flowchart, which flows into Box B. Box B flows into Box C. Box C flows into Box D. On the bottom of the right side of the flowchart, Box F flows into Box E, and Box E flows into Box D. Box D is the highest point in the flowchart.Jenny is accused of breaking a federal law. Which section of the diagram represents the court that will have original jurisdiction? A B F E suppose the marginal propensity to save is equal to .33. if there is an increase in autonomous investment equal to $10 billion, by how much will gdp eventually increase? four-year-old stefon had not wet his bed for over a year. however, he started bed-wetting again soon after his sister was born. according to freud, stefon's behavior is most likely an example of Historically, socialism is a controversial word in the United States becauseGroup of answer choicesthe country's social structure has a history of being charitable.it led to the Great Depression.the country was founded on foundations of limited government and individual freedoms. Underline two sentences in the passage that show examples of persuasive techniques. Use the Persuasive Technique chart to label each example that you underline. Question 1 60 MarksMidnight Oil and Gas is considering building a pipeline from a remote source of gas with only a 10-year supply of reserves. This qualifies the pipeline for a CCA rate of 20 percent rather than the normal 4 percent. The pipeline will cost $1 million; accompanying buildings will cost another $200,000. The buildings are Class 1 with a CCA rate of 4 percent.Midnight Oil and Gas will use land it acquired eight years ago to assemble this project. The land was purchased for $500,000, and it is now worth $2 million. Annual cash flows before amortization from the pipeline and taxes for the 10-year period are estimated at $625,000.In 10 years the buildings and pipeline will be worthless, but the land will be worth $4.5 million. Environmental clean-up costs at the end of the project are expected to be $1.2 million. Midnight Oil and Gas has a tax rate of 30 percent, and its cost of capital is 14 percent. Capital gains are taxed at 50 percent of the gain.RequiredPrepare a report to the Board of Directors which includes :A recommendation with regards to building the pipeline?Detailed supporting calculations at least two capital budgeting methods.Other non-financial factors to consider for the project.Any other issues that you want to highlight. if a researcher developed a drug that prevented insertion of the sars-cov-2 spike protein into the endoplasmic reticulum, what effect would you predict from this drug? Currently, your firm sells 120 units a month at a price of $49 a unit. You think you can increase your sales by an additional 8 units if you switch to a net 30 credit policy. The interest rate is 2.5 percent per month and your variable cost per unit is $20. What is the net present value of the proposed credit policy switch? Please answer to the nearest dollar. Your Answer: in evaluating a claim of sexual harassment made by a woman, the standard used by eeoc and most courts to determine whether harassment is sufficiently severe and pervasive is: